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Non-compete clauses have come under increasing scrutiny by policymakers and competition authorities worldwide. This article examines the complex economics behind these employment restrictions, exploring when they may hinder competition and innovation versus when they protect legitimate employer investments in training. Through the lens of human capital theory, it analyzes whether blanket bans or more nuanced, market-specific approaches better balance worker mobility with employer incentives.

The Federal Acquisition Regulatory (FAR) Council published three final rules on Aug. 11, 2021, amending the FAR to implement changes mandated by various National Defense Authorization Acts (NDAAs)...